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STATEMENT OF PROFIT AND LOSS

In Illustration 6 of Textbook page no.4.41 of Paper1, opening stock, closing stock, and Purchases amounts are given.... But Under 'Cost of materials consumed', only the value of purchases is included....... i hav attached the qn and answer with this.... But in other questions, we have found the value by using: Opening stock+Purchases-closing stock Why??? Please clear this doubt

Attachments

IMG_20210225_151422.jpg

IMG_20210225_151304.jpg

IMG_20210225_151546.jpg


Kind Dude

Kind Dude

CA Inter

0

25-Feb-21 15:19

23

Answers (8)

Best Answer

Inventory is assumed to be of finished goods.


Suraj Lakhotia

Suraj Lakhotia

Admin

25-Feb-21 17:57

I m sending once again attachments in orderwise below


Kind Dude

Kind Dude

CA Inter

0

25-Feb-21 15:21

Page1

Attachments

IMG_20210225_151304.jpg


Kind Dude

Kind Dude

CA Inter

0

25-Feb-21 15:21

Page 2

Attachments

IMG_20210225_151422.jpg


Kind Dude

Kind Dude

CA Inter

0

25-Feb-21 15:22

Page 3

Attachments

IMG_20210225_151546.jpg


Kind Dude

Kind Dude

CA Inter

0

25-Feb-21 15:23

Inventory is assumed to be of finished goods.

Can we consider inventory as Raw materials and write as Opening+purchases-closing=cost of materials consumed. ????


Kind Dude

Kind Dude

CA Inter

0

25-Feb-21 18:01

Can we consider inventory as Raw materials and write as Opening+purchases-closing=cost of materials consumed. ????

You can do that. A better assumption is that it is finished goods.


Suraj Lakhotia

Suraj Lakhotia

Admin

26-Feb-21 16:10

You can do that. A better assumption is that it is finished goods.

Ohh kk sir...... Thank You


Kind Dude

Kind Dude

CA Inter

0

26-Feb-21 16:27

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